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TUC warns of spending cuts impact
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Cutting public spending would cause thousands of job losses and prolong the country's economic "agony", the TUC warned in a new report.
Workers would be laid off in private firms as well as the public sector if widespread cuts were made, hitting the recovery from recession, said the union organisation.
A study found that for every £1 of public money invested in services through direct employment and procurement of supplies, a further 64p was generated in the local economy.
The TUC also surveyed 2,000 public sector workers, finding that most had seen an increased demand for services such as jobseeking, debt advice and training since the recession started.
The report, published ahead of new jobless figures on Wednesday, also warned that the recession and rising unemployment were a "major source" of the increase in poverty levels.
TUC general secretary Brendan Barber said: "Public spending is a key election battleground. Immediate and sweeping cuts would be disastrous for the economy, for workers and for the users of public services.
"We need the public sector more than ever in a recession. Sharp cuts in public spending would not only hit the most vulnerable in society, but would also hamper the chances of growth, increase the incidence of long-term unemployment and cause widespread job losses in both the public and private sectors.
"Unemployment is now increasing at a slower rate than many were predicting, but long-term unemployment is likely to continue rising sharply for many months to come. Cutting back on public spending would put thousands of workers at risk of permanent worklessness, risking a repeat of the enormous social and economic costs of the 1980s."
Paul O'Brien, chief executive of the Association of Public Service Excellence, which helped with the research, added: "Whilst the public sector may seem a fashionable target for cuts there is a real danger that slashing public expenditure, when the economy is on a fragile road to recovery, would lead to a double dip in a post recession environment.
"Far from being a drain on finances, public service investment over the last 10 years appears to have paid off with service improvements and value for money gains. Public services can provide a steely local resilience in terms of jobs, skills and anti-poverty strategies."
